Paraguayan Telco Seeks 10-Year

Telefonica Celular del Paraguay (Telecel) is aiming for a debut $300m 2022 bond, according to Fitch, which assigns a BB rating to the deal. “Telecel’s ratings are supported by its strong market position as the main operator in the Paraguayan telecom sector,” the agency adds. Despite increased competition in recent years, Telecel holds a comfortable 57% market share in the mobile segment. While it has 100% penetration in the telephony segment, it is looking to branch out in broadband and pay TV. It recently acquired Cablevision, which holds 89% market share in pay TV and sizeable fixed broadband operations. Telecel is visiting fixed-income accounts in Los Angeles, New York, Boston, Lima and London through today. Proceeds will be used to repay a $150m bridge loan raised for the Cablevision buy, with the balance to finance capex and potential spectrum license costs. Telecel operates under the Tigo brand name and is a subsidiary of Millicom International Cellular, a mobile telephony and internet company in 14 markets across Latin America and Africa. Citi and Morgan Stanley are managing the process.